A class action is a type of lawsuit in which one or a few plaintiffs seek to represent hundreds or thousands of plaintiffs with the same or similar claims against the same defendants. Rules of procedure in state and federal courts permit class actions in limited circumstances for the purpose of resolving similar disputes more efficiently than if each plaintiff filed a separate lawsuit.
In Delaware, class action lawsuits are governed by the Delaware Court of Chancery Rule 23, which is similar to Federal Rule of Civil Procedure 23. These rules allow one or more plaintiffs to represent a larger group of individuals, known as a class, in a single lawsuit if certain criteria are met. The criteria include having a large number of people with similar legal claims, common questions of law or fact, representative plaintiffs with claims typical of the class, and a representative plaintiff who can fairly and adequately protect the interests of the class. Class actions are designed to provide an efficient and economical way to resolve claims that are common to a large group of people, which might be impractical to litigate individually. The court must certify the class for the case to proceed as a class action, and class members are typically notified and given an opportunity to opt out of the class. Class actions in Delaware can address a wide range of issues, including consumer fraud, corporate governance, employment practices, and more.